Macroeconomics, the economy, inflation etc. *likely to be very dull*
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if the Govt wasn't spending £100bn a year on debt servicing they could afford to pay up. Then again if inflation was lower they would not have to pay so much which is what I mean by a tipping point outside of their control.rick_chasey said:What do inflation related strikes have to do with debt?
Imagine the increases when those GFC debts come up for renewal0 -
Shares in Silicon Valley Bank (SVB), a key lender to technology start-ups, plummeted on Thursday as investors moved to withdraw their deposits.https://www.bbc.co.uk/news/business-64911066
The slide came a day after the bank announced a $2.25bn (£1.9bn) share sale to help shore up its finances.
Shares in banks have fallen around the world - with the four largest US banks, including JP Morgan and Wells Fargo, losing more than $50bn in market value.
One venture capitalist told the BBC the day's events were "wild" and "brutal".
Stock markets in Asia also fell on Friday, led lower by shares in banks.
Shares in SVB saw their biggest one-day drop on record as they plunged by more than 60% and lost another 20% in after-hours trade.
The firm launched the share sale after losing around $1.8bn when it offloaded a portfolio of assets, mainly US Treasuries.0 -
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Ouch!
You kind of p1$$ed on me chips twice there.0 -
HSBC has agreed to buy the UK arm of collapsed US Silicon Valley Bank (SVB), bringing relief to UK tech firms who warned they could go bust without help.https://www.bbc.co.uk/news/business-64937251
Its problems prompted a run on the bank in the US and sparked fears in the wider banking sector, with more than 200 bosses of UK tech companies signing a letter addressed to Mr Hunt calling for the government to step in.0 -
Silicon Valley Bank collapse ‘could force central banks to stop interest rate rises’https://www.theguardian.com/business/2023/mar/13/silicon-valley-bank-collapse-central-banks-interest-rate-rises
Analysts say US Federal Reserve will probably reject further increase in borrowing costs next week0 -
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The problem with pay is not new. Real wages for public sector workers* have been falling for years.surrey_commuter said:
if the Govt wasn't spending £100bn a year on debt servicing they could afford to pay up. Then again if inflation was lower they would not have to pay so much which is what I mean by a tipping point outside of their control.rick_chasey said:What do inflation related strikes have to do with debt?
Imagine the increases when those GFC debts come up for renewal
*Except MPs
It's just a hill. Get over it.0 -
amazing how little reporting this has gotrick_chasey said:0 -
Have you seen how they were “hedging” their position?surrey_commuter said:
amazing how little reporting this has gotrick_chasey said:
Nuts.
Even funnier is their chief administration officer was previously the CFO for…….Lehman Brothers. But of course!!0 -
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Did you read the WSJ take?
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Way outside my area of expertise but it did not seem to be run anything like a normal bank and there seemed to be a conflict of interest with the VCs.rick_chasey said:
Have you seen how they were “hedging” their position?surrey_commuter said:
amazing how little reporting this has gotrick_chasey said:
Nuts.
Even funnier is their chief administration officer was previously the CFO for…….Lehman Brothers. But of course!!0 -
Health of European banks in focus as stocks plunge again over Credit Suisse and rate rise worries
Banking stocks are under renewed pressure as worries intensify over a major European lender's balance sheet and investors ponder what another big rate rise would mean for banks across the euro
https://news.sky.com/story/health-of-european-banks-in-focus-as-stocks-plunge-again-over-credit-suisse-and-rate-rise-worries-12834337
Too reliant on cheap credit.0 -
We appear to be walking into another banking crisis. The reasons may be different but my question is, have lessons been learned or is another crash round the corner?The above may be fact, or fiction, I may be serious, I may be jesting.
I am not sure. You have no chance.Veronese68 wrote:PB is the most sensible person on here.0 -
U.K. banks are significantly better capitalised than before the GFC, so the system should collectively be robust. That’s not to rule out the weakest being taken down though.
The lesson that still needs to be learnt is that if it sounds too good to be true (higher returns than “risk free” with no additional risk) then it is.0 -
Yes, but I am looking at it on a worldwide scale. 2008 started off in America and shut down Northern Rock. Our banks are better placed but that might not stop a market crash.wallace_and_gromit said:U.K. banks are significantly better capitalised than before the GFC, so the system should collectively be robust. That’s not to rule out the weakest being taken down though.
...The above may be fact, or fiction, I may be serious, I may be jesting.
I am not sure. You have no chance.Veronese68 wrote:PB is the most sensible person on here.0 -
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If the UK market crashes then if banks are fundamentally sound they will recover quite quickly. In crude terms, greed and fear drive the markets. Fear will always dominate in the short term, but if there's nothing to actually be scared about then greed will return.pblakeney said:
Yes, but I am looking at it on a worldwide scale. 2008 started off in America and shut down Northern Rock. Our banks are better placed but that might not stop a market crash.wallace_and_gromit said:U.K. banks are significantly better capitalised than before the GFC, so the system should collectively be robust. That’s not to rule out the weakest being taken down though.
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2008 in the UK was a huge issue because so many banks were fundamentally unsound. Countries with smaller and/or more tightly regulated financial sectors weren't affected anywhere near as badly as the US, UK, Ireland and Iceland. There was some canny marketing involved in prefixing "Financial Crisis" with "Global". One might be cynical and suggest that "Global" was included to create the impression that collapsing domestic banking sectors were somehow unavoidable due to mysterious global forces when in reality, the cause was inadequate local regulation.
The financial crisis wasn't global per se, even if the second order effects on economies were global, given that the US was involved and economies are highly interlinked these days.
All that said, if the US suffers a repeat of 2008 then the recessionary implications of that will be hard to avoid.0 -
All good news then and best to ignore media. Probably good advice all round.wallace_and_gromit said:
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The financial crisis wasn't global per se, even if the second order effects on economies were global, given that the US was involved and economies are highly interlinked these days.
All that said, if the US suffers a repeat of 2008 then the recessionary implications of that will be hard to avoid.
Except the bit above...The above may be fact, or fiction, I may be serious, I may be jesting.
I am not sure. You have no chance.Veronese68 wrote:PB is the most sensible person on here.0 -
Debt isn't cheap anymore.0
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Be worried and take sensible precautions such as spreading savings across banks so that there are no amounts not covered by the FSCS and not relying on volatile asset values for immediate cash requirements. But no need to load up on bullets, baked beans and gold before heading to your secure off-grid compound.pblakeney said:
All good news then and best to ignore media. Probably good advice all round.wallace_and_gromit said:
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The financial crisis wasn't global per se, even if the second order effects on economies were global, given that the US was involved and economies are highly interlinked these days.
All that said, if the US suffers a repeat of 2008 then the recessionary implications of that will be hard to avoid.
Except the bit above...
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Yeah, prepare for the worst, hope for the best.
All you are reading here is the preparing part. I'm not all doom and gloom. 😉The above may be fact, or fiction, I may be serious, I may be jesting.
I am not sure. You have no chance.Veronese68 wrote:PB is the most sensible person on here.0 -
I'm pretty eeyore and it will be fine. No-one who knows anything is running around with their hair on fire.0
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As recently as 24 hours ago, the European Central Bank (ECB) was widely expected to hike interest rates by half a percentage point Thursday in its fight against inflation. But Wednesday’s market turmoil could force a rethink.https://edition.cnn.com/2023/03/16/economy/european-central-bank-interest-rates/index.html
Banking stocks sold off sharply Wednesday, as concerns about the sector’s resilience in the wake of Silicon Valley Bank’s demise spread beyond the United States.
It will be interesting to see.0 -
https://www.youtube.com/watch?v=eqwfatWtILg
